Medical expenses are tax deductible

K. ARAVIND

Tax exemptions are available for various health related expenses as per Section 80D, Section 80DD, Section 80U and Section 80DDB of the Income Tax Act. Premiums up to Rs 25,000 paid into a health insurance policy are tax deductible under Section 80D of the Income Tax Act. Premium of Rs.25,000 on health insurance policy in the name of parents below 60 years of age is also tax deductible. If the parents are 60 years of age or above, they can get tax deduction for premium up to Rs. 50,000.

If the policyholder is a senior citizen, the premium up to Rs.50,000 of the health insurance policy in his name will also be tax deductible. Until last year, it was Rs.30,000. Tax exemption under Section 80DD is available for medical expenses of dependents with physical disabilities or for investments made in a special scheme for them. The fixed tax deduction is Rs.75,000. This exemption is available only if the disability is less than 80 per cent and above 40 per cent. If the physical disability is more than 80 per cent, medical expenses of Rs.1.25 lakh will be tax deductible.

Under Section 80U, the taxpayer is entitled to a fixed tax deduction of Rs.75,000 in case of illness such as blindness and mental retardation. If the physical disability is more than 80 per cent, medical expenses of Rs 1.25 lakh will be tax deductible.

This discount is based on a fixed amount. In other words, for the treatment of a patient with more than 80 per cent disability, a concession of Rs.1.25 lakh is permissible. However, if the dependent has availed tax exemption for this treatment, the guardian cannot claim tax deduction. Even if the physical disability is less than 40 per cent, no tax deduction is available. All you have to do is submit a certificate stating the percentage of physical disability to get the exemption. No other documents are required. If the taxpayer and his dependent spouse, children, parents and siblings suffer from ailments such as Parkinson’s and neurological diseases, they will get a fixed tax deduction of Rs.1 lakh

The tax deduction is available only if the physical disability due to the disease is forty per cent or more. If the dependent patient is a senior citizen, tax exemption for medical expenses up to Rs. 1 lakh is available. Ten per cent of the amount after deduction, including tax deduction of Rs 1.5 lakhs, will be considered.